Exhibit Metal surcharges

Explanation of the raw material/metal surcharges

(regarding the raw materials dysprosium and neodym (= rare earths), see separate explanation on the next page)
Dated August 5th, 2015
Surcharge calculation
To compensate for variations in the price of the raw
materials silver, copper, aluminum, lead, gold,
dysprosium* and/or neodym*, surcharges are
calculated on a daily basis using the so-called
metalfactor. . These apply to products containing these
raw materials and are calculated per raw material.
These surcharges are added to the price of a product if
the basic official price of the raw material in question is
exceeded.
Surcharges are calculated in accordance with the
following criteria:
- Basic official price of the raw material
Basic official price of the day prior to receipt of the
order or prior to release order (Daily Price) for:
o silver (processed),
o aluminum (aluminum in cables)
Source: Umicore, Hanau
(http://www.metalsmanagement.umicore.com)
and for:
o copper (lower DEL-notation + 1%),
o aluminum (aluminum in cables) and
o lead (lead in cables)
Source: Schutzvereinigung DEL-Notiz e.V.
(http://www.del-notiz.org/)
- Metal factor of the products
Certain products are displayed with a metal factor.
The metal factor determines the official price (for
those raw materials concerned) as of which the
metal surcharges are applied and the calculation
method used (weight or percentage method). An
exact explanation is given below.
Weight method
The weight method uses the basic official price, the
Daily Price and the raw material weight. In order to
calculate the surcharge, the basic official price must be
subtracted from the Daily Price. The difference is then
multiplied by the raw material weight.
The basic official price can be found in the table below
using the number (1 to 9) of the respective digit of the
metal factor. The raw material weight can be found in
the respective product descriptions.
Percentage method
Use of the percentage method is indicated by the letters
A-Z at the respective digit of the metal factor.
The surcharge is increased - dependent on the deviation
of the Daily Price compared with the basic official price -
using the percentage method in "steps" and
consequently offers surcharges that remain constant
within the framework of this "step range". A higher
percentage rate is charged for each new step. The
respective percentage level can be found in the table
below.
Metal factor examples
LEA-----
Basis for %-surcharge: List price
Silver: basis 150€, step range 50 €, 0.5%
Copper: basis 150 €, step range 50 €, 0.1%
No surcharge for aluminum
No surcharge for lead
No surcharge for gold
No surcharge for dysprosium
No surcharge for neodymium

Structure of the metal factor N-A6----

The metal factor consists of several digits; the first digit Basis for % surcharge: Customer net price
indicates whether the percentage method of No surcharge for silver
calculation refers to the list price or a discounted price Copper: basis 150 €, step range 50 €, 0.1%
(customer net price) (L = list price / N = customer net Aluminum acc. to weight,
price). basic official price 225 €
The remaining digits indicate the method of calculation No surcharge for lead
used for the respective raw material. If no surcharge is No surcharge for gold
added, a "-" is used. No surcharge for dysprosium
No surcharge for neodymium

1st digit List or customer net price

--3-----
using the percentage method
No basis necessary
2nd digit for silver (AG) No surcharge for silver
3rd digit for copper (CU) Copper acc. to weight,
4th digit for aluminum (AL) basic official price 150 €
5th digit for lead (PB) No surcharge for aluminum
No surcharge for lead
6th digit for gold (AU)
No surcharge for gold
7th digit for dysprosium (Dy)* No surcharge for dysprosium
8th digit for neodymium (Nd)* No surcharge for neodymium
*) Subject to a different method of calculation, please refer to
the separate explanation for these raw materials on the
next page

Exhibit Metal surcharges – Legal DF&PD – A0082015 Seite 1 von 3

 Exhibit Metal surcharges
Explanation of the raw material/metal surcharges
for dysprosium
th
and neodym (=rare earths)
Dated August 5 , 2015
Surcharge calculation Structure of the metal factor
To compensate for variations in the price of the raw The metal factor consists of several digits; the first digit is
materials dysprosium and/or neodym, surcharges are not rel-evant to the calculation of dysprosium and
calculated on a daily basis using the so-called metal neodym.
factor. This applies to products containing at least one of The remaining digits indicate the method of calculation
these raw materials. The surcharge for dysprosium and used for the respective raw material. If no surcharge is
neodym is calculated as a supplement to the price of a added for a raw material, a "-" is used.
product if the basic official price of the raw material in
question is exceeded. List or customer net price
1st digit
The surcharge is calculated in accordance with the using the percentage method
following criteria: 2nd digit for silver (AG)*
- Basic official price of the raw material 3rd digit for copper (CU)*
Three-month basic average price (see below) in the 4th digit for aluminum (AL)*
period before the quarter in which the order was 5th digit for lead (PB)*
received or the release order took place
6th digit for gold (AU)*
(Average Official Price) for:
o Dysprosium 7th digit for dysprosium (Dy)
(Dy Metal, 99%min FOB China; USD/kg), 8th digit for neodymium (Nd)
o Neodym
(Nd Metal, 99%min FOB China; USD/kg) Weight method
Quelle: Fa. Asian Metal Ltd The weight method uses the basic official price, the
(http://www.asianmetal.com) average price and the raw material weight. In order to
calculate the surcharge, the basic official price must be
- Metal factor of the products subtracted from the average price. The difference is then
Certain products are displayed with a metal factor. multiplied by the raw material weight.
The metal factor indicates (for those raw materials
concerned) the basic official price as of which the The basic official price can be found in the table below
surcharges for dysprosium and neodym are using the number (1 to 9) of the respective digit of the
calculated using the weight method. An exact metal factor. Your Sales contact can inform you of the raw
explanation of the metal factor is given below. material weight.
Metal factor examples
Three-month average price
The prices of rare earths vary according to the foreign ------71
currency, and there is no freely accessible stock No basis necessary
exchange listing. This makes it more difficult for all parties No surcharge for silver
involved to monitor changes in price. In order to avoid No surcharge for copper
continuous adjustment of the surcharges, but to still No surcharge for aluminum
ensure fair, transparent pricing, an average price is No surcharge for lead
calculated over a three-month period using the average No surcharge for gold
monthly foreign exchange rate from USD to EUR (source: Dysprosium acc. to weight,
basic official price 300 €
European Central Bank). Since not all facts are
Neodymium acc. to weight,
immediately available at the start of each month, a one- basic official price 50 €
month buffer is allowed before the new aver-age price
applies.

Examples of calculation of the average official price:

Period during which the

Period for calculation of
the average price:
Sep 2012 - Nov 2012
Dec 2012 - Feb 2013
Mar 2013 – May 2013
Jun 2013 - Aug 2013
order/release order is
effected and the average
price applies:
Q1 in 2013 (Jan – Mar)
Q2 in 2013 (Apr – Jun)
Q3 in 2013 (Jul - Sep)
Q4 in 2013 (Oct - Dec)

*) For a different method of calculation, refer to the separate

explanation for these raw materials on the previous page
Exhibit Metal surcharges – Legal DF&PD – A0082015 Seite 2 von 3
 Exhibit Metal surcharges
Values of the metal factor

% surcharge % surcharge % surcharge % surcharge % surcharge

Basic 1st step 2nd step 3rd step 4th step per additional
Percentage official Step step
method price range Official price in Official price in Official price in Official price in
in € € € € €
151.01 - 200.00 200.01 - 250.00 250.01 - 300.00 300.01 - 350.00

A 150 50 0.1 0.2 0.3 0.4 0.1

B 150 50 0.2 0.4 0.6 0.8 0.2
C 150 50 0.3 0.6 0.9 1.2 0.3
D 150 50 0.4 0.8 1.2 1.6 0.4
E 150 50 0.5 1.0 1.5 2.0 0.5
F 150 50 0.6 1.2 1.8 2.4 0.6
G 150 50 1.0 2.0 3.0 4.0 1.0
H 150 50 1.2 2.4 3.6 4.8 1.2
I 150 50 1.6 3.2 4.8 6.4 1.6
J 150 50 1.8 3.6 5.4 7.2 1.8
175.01 - 225.00 225.01 - 275.00 275.00 - 325.00 325.01 - 375.00

O 175 50 0.1 0.2 0.3 0.4 0.1

P 175 50 0.2 0.4 0.6 0.8 0.2
R 175 50 0.5 1.0 1.5 2.0 0.5
225.01 - 275.00 275.01 - 325.00 325.01 - 375.00 375.01 - 425.00

S 225 50 0.2 0.4 0.6 0.8 0.2

U 225 50 1.0 2.0 3.0 4.0 1.0
V 225 50 1.0 1.5 2.0 3.0 1.0
W 225 50 1.2 2.5 3.5 4.5 1.0
150.01 - 175.00 175.01 - 200.00 200.01 - 225.00 225.01 - 250.00

Y 150 25 0.3 0.6 0.9 1.2 0.3

400.01 - 425.00 425.01 - 450.00 450.01 - 475.00 475.01 - 500.00

Z 400 25 0.1 0.2 0.3 0.4 0.1

Price basis (1st digit)
L Calculation based on the list price
N Calculation based on the customer net price (discounted list price)
Basic
Weight official
method price
in €
1 50
2 100
3 150
4 175
5 200 Calculation based on raw material weight
6 225
7 300
8 400
9 555
Misc.
- No metal surcharge

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